Vietnam real estate giants suffer after tough year
Vietnam's top 10 real estate investors in 2023 no longer include industry giants Novaland, BIM Land or Hung Thinh Land, according to Vietnam Report, a leading local ranking and research company.
The top 10 list this year includes Vinhomes, Nam Long, Ecopark, Khang Dien, Phat Dat, Ha Do Group, Phu My Hung, DIC, Van Phu Invest, and AnGia Group.
Nam Long is in the second position, replacing Novaland. Last year, Nam Long ranked fourth.
This year's ranking records new names, including Phu My Hung, Van Phu Invest and AnGia Group. Of these, Phu My Hung, which reported a profit of more than VND3.6 trillion ($153.54 million) in 2022, moved to the seventh position.
Khang Dien, Ha Do, and Phat Dat advance in the ranking compared to last year, while Vinhomes still ranks first, ever since 2019.
The companies were filtered out from the database of Vietnamese enterprises with financial data updated to December 31, 2022, the use of the Media Coding method (encoding press data in the media) and Vietnam Report surveys.
The list of top 10 industrial real estate investors in 2023 did not change compared to last year. Becamex IDC and VSIP, both leading developers of industrial townships in Vietnam, and Viglacera, also the country's leading producer of building materials, remain among the top three.
According to Vietnam Report, although many market segments have entered bottlenecks, industrial real estate is still a bright spot with an occupancy rate of 85% or more.
Due to strong demand from various sectors, the average occupancy rate of tier-1 markets in the north, including Hanoi, Hai Phong city, Hai Duong, Hung Yen, Bac Ninh province, reached 83.2% by the fourth quarter of 2022.
This segment in the southern region also made positive performance with manufacturing hubs Ho Chi Minh City, Dong Nai, Binh Duong, and Long An province recording an average occupancy rate of 90%.
A total 28.6% of industrial real estate companies said their revenue and profit grew by more than 15% compared to 2021.
Since the first quarter of this year, a series of investors have planned to open for sale many projects. Improved market excitement stems not only from the supply side but also demand. Interest in real estate products increased in most segments, especially land plots.
Real estate rose to the second position in attracting foreign direct investment in the quarter, with nearly $766 million in registered capital or 14.1% of the country's total.
Since April 2022, the market had gradually subsided with a decrease in purchasing power, first in the segment of rural land and land plots and then spreading to the mid and high-end apartment markets in large urban areas. The segments of serviced apartments, offices for rent, villas, townhouses, and resort real estate all recorded a significant decrease. This situation lasted until the end of 2022.
In addition, some business leaders were arrested for further investigation on charge of fraud or violations in information disclosure, driving insecurity across the whole market, causing many transactions to be delayed, and ongoing projects to suddenly stop. According to most experts, these difficulties are more serious than the force majeure factors from the pandemic.
According to the General Statistics Office, by the end of 2022, the number of real estate businesses dissolved was more than during the Covid-19 outbreak with nearly 1,200 companies. Meanwhile, the number of companies dissolved in pandemic years 2021 and 2020 was 861 and 978 respectively. In Q1/2023, 1,816 companies ceased business for a definite time and 341 dissolved.
To cope with the cash flow shortage, 55.2% of businesses surveyed by Vietnam Report chose to borrow from commercial banks, up 4.1% compared to the previous year. The proportion of companies expected to tighten their belts and reduce operating costs increased the most (41.4%). The proportion of enterprises mobilizing from the bond channel dropped sharply from 24.4% to 1.1%.
- Read More
Posco keen on investing in Vietnam's $2.2 bln LNG power project
South Korea’s steelmaker Posco is eyeing to invest in the $2.2 billion Quynh Lap LNG-fired power plant project in Vietnam’s central province of Nghe An.
Energy - Thu, November 21, 2024 | 10:42 am GMT+7
Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta
The Mekong Delta city of Can Tho has accepted a subsidiary of private multi-sector Hoa Lam Group as the investor of the Aeon Mall Can Tho commerce and service center.
Industries - Thu, November 21, 2024 | 10:31 am GMT+7
Vietnam startup expert closes Monkey in Black coffee shop
Tung BT (Tran Thanh Tung), a popular startup expert and social media influencer, is closing his final coffee shop in Ho Chi Minh City, ending a 10-year journey of the "Monkey in Black" brand.
Companies - Thu, November 21, 2024 | 8:16 am GMT+7
Vietnam-Singapore ties set for elevation to comprehensive strategic partnership
Vietnam and Singapore will elevate bilateral ties to a comprehensive strategic partnership and Singaporean Prime Minister Lawrence Wong will visit Vietnam next year.
Politics - Wed, November 20, 2024 | 8:16 pm GMT+7
Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders
Vingroup, Vietnam’s largest private conglomerate by ecosystem, has set up a robotics unit as it moves to ramp up its industrial-high technology ecosystem.
Companies - Wed, November 20, 2024 | 6:17 pm GMT+7
E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam
E-commerce and digital platforms will have to declare and pay taxes on behalf of their sellers starting January 1, 2025, according to a draft amendment to the Law on Tax Administration.
Finance - Wed, November 20, 2024 | 5:37 pm GMT+7
Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec
In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.
Companies - Wed, November 20, 2024 | 3:52 pm GMT+7
Central Vietnam province okays $88 mln automobile part project
Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.
Industries - Wed, November 20, 2024 | 3:44 pm GMT+7
Thai packaging firm Thantawan Industry makes inroad into Vietnam
Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.
Industries - Wed, November 20, 2024 | 3:34 pm GMT+7
Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC
Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.
Companies - Wed, November 20, 2024 | 2:29 pm GMT+7
Pegatron to quadruple workforce at $800 mln project in Vietnam
Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.
Industries - Wed, November 20, 2024 | 2:03 pm GMT+7
Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park
WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.
Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7
Indonesia, Brazil sign cooperation deals worth $2.65 bln
Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.
Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7
Nusantara not yet feasible as Indonesia’s capital city: authorities
Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.
Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7
Malaysia’s Halal industry to make up 10.8% of GDP by 2030
Malaysia’s Halal industry is projected to account for 10.8% of the country's GDP by 2030, with an estimated value of RM231.1 billion ($51.7 billion).
Southeast Asia - Wed, November 20, 2024 | 11:48 am GMT+7
Thailand takes more fiscal measures to sustain growth momentum
The Thai government is working on a raft of fresh fiscal measures to sustain an economic recovery, foster new foreign investment, and lower the near-record household debt, says Thai Prime Minister Paetongtarn Shinawatra's top aide.
Southeast Asia - Wed, November 20, 2024 | 11:46 am GMT+7